Fed's Tarullo Outlines Rules for Big U.S. Insurers
May 20 2016 - 9:30AM
Dow Jones News
By Ryan Tracy
WASHINGTON -- Big U.S. insurers Prudential Financial Inc. and
American International Group Inc. would face tougher capital
requirements than their peers under new rules outlined for the
first time Friday by the Federal Reserve's point-man on
regulation.
Fed Gov. Daniel Tarullo said the Fed will propose rules "in the
coming weeks" that will have higher compliance costs for insurers
considered "systemically important" to the U.S. financial
system.
That group currently includes AIG and Prudential, but not
MetLife Inc., which won a court case overturning its systemic label
earlier this year. The government has appealed MetLife's win.
The Fed gained authority for the first time to regulate
insurance companies under the 2010 Dodd Frank law, but has taken
more than five years to propose rules for the industry. Mr.
Tarullo's remarks Friday were the central banks most detailed
description to date of the pending regulations.
Mr. Tarullo didn't give all the details of the Fed rules, but he
sketched them out in a speech to the National Association of
Insurance Commissioners, a group of state regulators. He said the
Fed will propose different rules for systemic insurers than for
other insurance companies it regulates.
Write to Ryan Tracy at ryan.tracy@wsj.com
(END) Dow Jones Newswires
May 20, 2016 09:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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